If you have more than $50 million dollars in fixed assets on your ledger that has never been fully reviewed in detail by a 3rd party Specialist, a Fixed Asset Capitalization Review could benefit you.
Fixed Asset Depreciation Review
A fixed asset review evaluates a company’s federal tax depreciation schedule over the last 20 years and assigns the appropriate tax lives to misclassified assets. While a Cost Segregation Study focuses on buildings, a Fixed Asset Review encompasses all fixed assets a company owns, including real property, machinery, furniture, fixtures, and equipment. Misclassifications are generally caused due to changes to case law, use of “book” lives for tax purposes, or the in-depth knowledge necessary to determine correct lives.
The result of a KBKG Fixed Asset Review is immediate and substantial cash flow by way of accelerating deductions on assets that were previously placed in service with longer tax lives. Other benefits include accurate reporting of book-tax differences and accurate tax filings.